Mitsubishi Chem arm plans 2nd Haldia unit

MCC PTA India Corp, a subsidiary of Mitsubishi Chemical Corporation (MCC), is studying the feasibility of setting up a second unit as an expansion of its existing unit at Haldia, Yoshihiro Umeha, managing director (MD) of MCC PTA India, said.

"The average global production capacity is around 6 lakh tonne per annum (tpa). MCC has the technical know-how for such production," Umeha said at the sidelines of the session on 'Towards the establishment of Japan -India partnership', jointly organised by the Confederation of India Industry (CII) and consulate general of Japan, Kolkata.

The production at MCC PTA India was 4.7 lakh tpa in 2003. The expansion plan would depend on infrastructure development in West Bengal to support the venture, he cautioned.

"We source the major raw materials - paraxylene and acetic acid - from south-east Asian countries such as Singapore and Thailand and have to be dependent on roadways to a great extent for supplying our products. Unless the road and other infrastructure facilities develop, the expansion plan might be tough", he stated.

"The company has wiped out all its accounting losses in the last year and is now making a profit" , he added.

Till date the overall investment made by the company in India was approximately $ 400 million.

MCC had no plans of diluting the its stake in the company, at least in the near future, said Umeha.

Apart from MCC, which had 66 per cent stake, Mitsubishi Corporation, Nissho Iwai Corporation, Tomen Corporation, Marubeni Corporation and Sumikin Bussan Corporation held equity in MCC PTA India.